1997 (7) TMI 42

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessment year 1961-62 for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the order under section 26A of the Indian Income-tax Act, 1922, dated November 8, 1965, for the assessment year 1961-62 ceased to exist in view of the fact that the assessment itself ceased to exist and that the Income-tax Off....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Appellate Assistant Commissioner. The best judgment assessment made under section 23(4) came to be set aside later and then a fresh assessment order on merits was made on the assessee-firm. In that assessment, the Income-tax Officer took the status of the assessee-firm as that of "URF". Aggrieved, the assessee-firm filed an appeal against the fresh assessment order made under section 23(3), ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... exist. When the Income-tax Officer passed a fresh assessment order, he should have passed a separate order under section 26A as well. In the present case, what he has done is that he has not passed any separate order under section 26A as the appeal had been dismissed by the Appellate Assistant Commissioner as being time barred... In our opinion this approach is not correct because while making a ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al. It will be seen that the basis of the order passed under section 26A was that the best judgment assessment had been made by the Income-tax Officer under section 23(4). So the renewal of registration was refused by way of penalty. Best judgment assessment having been set aside and fresh assessment having been made under section 23(3), the basis of the order passed under section 26A had disappea....